Simran Wind Project Ltd, subsidiary of Techno Electric & Engineering Company Ltd, had fully commissioned its expansion of 111.9 MW through wind power during FY 2011-12.

The project of 111.9 MW is fully operational in the state of Tamil Nadu in Amuthapuram, Rasta and Muthiampatti belt. The area accounts for a PLF of around 27.5% on average. The Company has entered into a 20-year Power Purchase Agreement under REC scheme with the Tamil Nadu Generation & Distribution Company (TANGEDCO) at an APPC (Average Power Purchase Cost) tariff of Rs 2.37 per unit which stands revised to RS 2.54 per unit at present. The total capacity is eligible under REC as per the CERC and is also eligible for GBI benefit. Moreover, the project is expected to generate 210,000 RECs on an annual basis.

The project was accomplished within a period of 6 months. However, there have been no compromises on quality. The world's largest independent renewable energy consultancy, Garrad Hassan, was hired to conduct the wind study. A complete Environment and Social study was conducted to understand the impact of the project on the local community. BVQI (Bureau Veritas Quality International), offering third party certification services of quality management, has setup a quality management team to ensure quality. The Wind Turbine Generators were specifically chosen & designed to withstand extreme conditions & operate effectively with lower maintenance cost.

The project was funded through a mix of debt & equity. The project brought in IFC as an equity partner in Simran, extending $5 mn (Rs 22.5 crore) for a 3.38% stake. Lenders to the project include IFC, Standard Chartered Bank and DBS Bank. Total capacity of 111.94 MW has been registered with Indian Renewable Energy Development Agency (IREDA) for Generation Based Incentive (GBI) & UN’s Clean Development Mechanism with the potential to generate around 210,000 CERs annually.